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Bain Capital Ventures Managing Director Matt Harris on the outlook for venture capital investments.
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Private equity and venture capital becoming political -- bulls on the campaign trail this year David Asman sat down at the Milken conference in Beverly Hills with one of the industry leaders.
To talk about the value these businesses bring to our economy and here's what he had to say.
I think the facts.
Support a case that Bain Capital ventures write every joining.
Plays an incredible role in strengthening economy and how they specifically.
We put money into businesses.
And we partner -- management.
Help them improve the performance and whether that be expanding overseas and hiring domestically see advancing their technology that's the kind of work we do.
Are there cases where you just go in and strip the company -- They're not case of that it's amazing that that sort of mid survives though isn't it.
Well it politics is -- not -- we don't know that.
But I think again.
That the facts will out you know on this matter and I think venture capital of the hard thing to attack personally.
I think when you look at FaceBook seem to go public when you look at Google and apple Amazon.
Collectively.
Trillion dollars of value in none of those companies.
-- anywhere near that fifteen years ago and under the bits of apple even existed in all of them supported by venture capital.
I think it's a hard thing to attack and I don't think this tax will be a major part of they'll tell us about the state of venture capital right now is it improving or getting worse.
Definitely improving I think there was a mild stepped back.
In the credit crisis for the last three or four years actually pointed to venture capital firms in what way well you've seen exits you know.
Since the Internet -- we had bit of a fallow period where.
Relatively few venture backed IPO's happen.
In the past eighteen months have been dozens.
Venture backed -- that returns money to investors.
That makes entrepreneurs wealthy and their employees will be and that wealth gets recycled into the venture economy.
So I think that after three years -- -- getting the prospect of for a quite.
Are there however it seems that there are a lot of there's a lot of repressed.
Supply of of entrepreneurs that is a lot of folks have been sitting back thinking gee I've got a great idea like to go for a -- but the economic environment looks so rotten.
But maybe I should wait.
Yeah I think there is a bit of fear but I think what's interesting is that.
The alternatives don't look quite as good as they used to -- the notion of going to work for a big company are staying and working for a big company isn't quite as safe as it has been.
And so we're seeing entrepreneurship from unlikely places people who have.
Great job to big companies are realizing that at this on the credit crisis those jobs are secure.
So entrepreneurship perversely looks less risky than the alternatives are looking riskier interest and so I think that's a -- and the capital is increasing.
Yes the venture industry.
After again a couple years of slowdown has raised more money in the past eighteen point four months.
Then the preceding five years I think there's -- general feeling of optimism not least because of FaceBook which has made a lot of people realize that.
Wealth creation in the hundreds of billions of dollars as possible for it's an optimistic way to leave it -- Harris good let's figure out thank you very much happy to see it.
